Decomposing Income, Earnings, and Wage Differentials
- 1 November 1985
- journal article
- research article
- Published by SAGE Publications in Sociological Methods & Research
- Vol. 14 (2) , 201-216
- https://doi.org/10.1177/0049124185014002005
Abstract
A reformulation of the widely used method for decomposing income, earnings, and wage differentials is undertaken in this article. This new formula is derived from the assumptions of the theory of discrimination that has motivated most of the empirical work on the subject. Unlike previous the decompositions, the method presented here yields separate terms representing the monetary advantage discrimination confers on whites and the monetary disadvantage to blacks.Keywords
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